The owners corporation must insure the building under a damage policy with an approved insurer.
The policy must cover the building for:
- replacement (where destroyed) or the reinstatement (where damaged but not destroyed) of the building back to the same condition it was in when new
- the payment for removal of debris and the payment of architects and others whose services are needed for the replacement or reinstatement.
Fair Trading laws require the building to be valued every 5 years for building insurance.